■ OIL
IEA warns of recession
High oil prices could tip the world economy into recession, the International Energy Agency (IEA) said yesterday. “That’s possible,” IEA executive director Nobuo Tanaka said on the sidelines of the International Energy Forum in Rome. On Monday, the IEA chief had said that oil prices, at their current levels, were “too high for everyone, especially for developing countries who face other significant costs increases, namely food prices.” The IEA represents the interests of the oil-consuming countries. World oil prices eased only slightly in Asian trade yesterday after once again spiking to a record high of US$117.56 the day before amid reports of pipeline sabotage in Nigeria and the refusal on the part of OPEC to raise output for the time being.
■ TRADE
Nomura employee probed
Japan’s top brokerage firm Nomura said yesterday that one of its employees was under investigation by the country’s financial watchdog over alleged insider trading. The government vowed a stern response over the case, which reportedly involves a 30-year-old employee at Nomura Securities who is suspected of leaking confidential merger and acquisition information to two acquaintances. The three Chinese men allegedly made about ¥40 million (US$388,000) in profit through insider trading in 2006 and last year, the Nikkei Shimbun reported, quoting unnamed sources familiar with the matter. The Tokyo District Prosecutors Office could arrest the Nomura employee anytime, Jiji Press news agency said.
■ AVIATION
Alitalia could lose license
Italian aviation authorities were warning they could revoke Alitalia’s flight license if it fails to meet its obligations, including safety. The warning came yesterday from Vito Riggio, the chairman of Italy’s civil aviation agency ENAC, following Air France-KLM’s announcement that it was abandoning its offer to buy Alitalia. Riggio’s comments on a state radio talk show highlighted aviation authorities’ worries that Alitalia’s failure to guarantee enough funds to operate for at least 12 months could compromise safety.
■ ELECTRONICS
TI profits up 28 percent
Texas Instruments (TI) said on Monday its first-quarter profit rose 28 percent as strong demand for analog chips used in electronic equipment offset lower sales of cellphone chips. Dallas-based Texas Instruments Inc. reported net income of US$662 million, or US$0.49 per share, including a tax gain of US$0.06 per share. A year ago, the company posted profit of US$516 million, or US$0.35 per share. Sales rose 2.5 percent to US$3.27 billion, compared with US$3.19 billion last year. Analysts polled by Thomson Financial expected adjusted profit of US$0.43 per share on slightly higher sales of US$3.28 billion.
■ INVESTMENT
Wealth management grows
Southeast Asia is seen as second only to China in growth potential for the wealth management field, a survey of wealth managers by Barclays Capital said yesterday. Asia’s wealth management growth is not expected to slow over the next two years, the survey showed. China was seen as the market with the highest revenue growth potential by 80 percent of the 91 respondents from 57 wealth management organizations across Asia, excluding Japan. Southeast Asia emerged second. About 60 percent of the wealth managers expected annual revenue growth of more than 15 percent from India, Taiwan and Hong Kong.
A Chinese freighter that allegedly snapped an undersea cable linking Taiwan proper to Penghu County is suspected of being owned by a Chinese state-run company and had docked at the ports of Kaohsiung and Keelung for three months using different names. On Tuesday last week, the Togo-flagged freighter Hong Tai 58 (宏泰58號) and its Chinese crew were detained after the Taipei-Penghu No. 3 submarine cable was severed. When the Coast Guard Administration (CGA) first attempted to detain the ship on grounds of possible sabotage, its crew said the ship’s name was Hong Tai 168, although the Automatic Identification System (AIS)
An Akizuki-class destroyer last month made the first-ever solo transit of a Japan Maritime Self-Defense Force ship through the Taiwan Strait, Japanese government officials with knowledge of the matter said yesterday. The JS Akizuki carried out a north-to-south transit through the Taiwan Strait on Feb. 5 as it sailed to the South China Sea to participate in a joint exercise with US, Australian and Philippine forces that day. The Japanese destroyer JS Sazanami in September last year made the Japan Maritime Self-Defense Force’s first-ever transit through the Taiwan Strait, but it was joined by vessels from New Zealand and Australia,
SECURITY: The purpose for giving Hong Kong and Macau residents more lenient paths to permanent residency no longer applies due to China’s policies, a source said The government is considering removing an optional path to citizenship for residents from Hong Kong and Macau, and lengthening the terms for permanent residence eligibility, a source said yesterday. In a bid to prevent the Chinese Communist Party (CCP) from infiltrating Taiwan through immigration from Hong Kong and Macau, the government could amend immigration laws for residents of the territories who currently receive preferential treatment, an official familiar with the matter speaking on condition of anonymity said. The move was part of “national security-related legislative reform,” they added. Under the amendments, arrivals from the Chinese territories would have to reside in Taiwan for
CRITICAL MOVE: TSMC’s plan to invest another US$100 billion in US chipmaking would boost Taiwan’s competitive edge in the global market, the premier said The government would ensure that the most advanced chipmaking technology stays in Taiwan while assisting Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) in investing overseas, the Presidential Office said yesterday. The statement follows a joint announcement by the world’s largest contract chipmaker and US President Donald Trump on Monday that TSMC would invest an additional US$100 billion over the next four years to expand its semiconductor manufacturing operations in the US, which would include construction of three new chip fabrication plants, two advanced packaging facilities, and a research and development center. The government knew about the deal in advance and would assist, Presidential
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